I'll meet you half-way. While I think it's possible Kagan might be arguing in the manner she did to remain faithful to her religion, multiculturalism, I don't think she has any desire or aspirations to see Sharia instituted here.
With respect to the absence of "Islam" or "Muslim" when this administration discusses terrorism, I think it's because Obama is a Muslim. I used to think he was too narcissistic to believe in anything - that he was an atheist - but, I'm starting to believe he might be a muzzie, from way back.
In any event, to successfully mount an effective campaign against Kagan, I think Republicans would be better served by focusing on more central arguments against her, and staying away from these more fringe or peripheral issues. The "Kagan is for Sharia law", is tough to make to a more moderate audience.